[Calc Review] Help me analyze this deal - I am new
Hello everyone. I am new to investing and bigger pockets. My dad handed me over a rental. It needs $20k worth of work. I plan to finish it in 6 months. It should bring the ARV to around $85k. I am thinking i will refinance for 40K and pay off the rehab loan and use the other 20K to buy the next property. am i doing something wrong? Guidance appreciated.
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Good start, but tighten the plan: confirm the true ARV with comps, get an insurance-ready scope of work, and line up your exit before you swing a hammer. Make sure the stabilized rent supports the new payment with reserves, and check seasoning rules for your target refi product so the cash-out is actually available on your timeline. Compare two exits now: a small cash-out refi vs. a first-position HELOC on the finished value; pick the one that leaves you positive cash flow and pays off the rehab lender cleanly. One red flag: don't count on pulling an exact amount for the next deal unless the appraisal and LTV pencil. Next step this week: get a lender quote sheet for both exits and a PM rent letter to validate the numbers.